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Powering the Modern Connected World with Security Made for People

From our CEO

Since our July 2021 announcement, we executed the implementation of our accelerated shift toward a subscription-based business, including through SaaS offerings. It included further developing the go-to-market strategy as well as reviewing organization and expenses to ensure we are spending and investing in alignment with our strategy. At the same time, we continue to expand our cloud-based offerings, as illustrated with the release of the Verimatrix Multi-DRM Core service earlier in 2021. Verimatrix is experiencing continuous growth of its SaaS business, as illustrated with the sequential growth of the ARR, even though products and offerings have not yet been changed to be subscription-only and “cloud first.” This growth should be further supported by new SaaS products going live throughout 2022. Additionally, the shift in our contract models toward full on-premises subscriptions starting beginning of 2022 will add to this positive trend and is expected to positively impact our ARR1 in 2022 and beyond.

Verimatrix reaffirms that this ongoing shift to a recurring revenue model, depsite how it mechanically affects recognition of revenues for the rest of 2021 and in 2022, stands as an opportunity to significantly expand the combined use of our core technologies and subscription-based services that offer unmatched security, speed, scalability and efficiency. It will put us, in the mid-term, on the right path toward an improved ability to generate recurring revenues and sound profitability.

October 2021

1 Recurring revenues comprise maintenance and support fees and subscription fees (of SaaS and non-SaaS implementations); they exclude revenue from royalties.

Amedeo D'Angelo

Amedeo D'Angelo

Chairman and CEO

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March 10th 2022

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March 9th, 2022

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